This article provides a collection of best practices and important insights regarding Bin Management in NetSuite, designed to enhance inventory management and precision. Effectively managing your bins in NetSuite can significantly influence your inventory accuracy.
The following features are specifically addressed in this guide:
Advanced Bin / Numbered Inventory Management
Multi-Location Inventory
Understanding NetSuite Bin Management by Location
When utilizing the Multi-Location Inventory along with Advanced Bin / Numbered Inventory Management, keep the following in mind. You can enable bin management selectively, applying it only to certain locations where bins will be utilized. It’s not mandatory to implement bins at every location.
To designate a location for bin usage, simply adjust the Location record and check the Use Bins box.
Need a refresher on how terms like "Location" are defined in NetSuite? Refer to the training resource titled Classes, Departments, Subsidiaries, Locations, Oh My!
Creating Bin Records in NetSuite
Bin records are linked to items and appear on receiving and fulfillment transactions, helping monitor the inventory housed in each bin. Ensure your bin numbers align with actual warehouse locations, making it easy for your team to locate the associated items.
To create new bins, navigate to Lists > Accounting > Bins > New.
Looking to transfer inventory between locations? Check out this tutorial on how to Replenish a Location via Inventory Transfer in NetSuite!
Selecting Bins for NetSuite Items
For the Bin Management and Advanced Bin / Numbered Inventory Management features to function, each item record must indicate that it uses bins.
You can choose a default bin for items that don't require bins. This does not apply to item types such as service and non-inventory, which can't utilize bins.
To configure an item to use bins:
Go to Lists > Accounting > Items and select Edit next to your chosen item.
Under the Purchasing/Inventory subtab, check the Use Bins box.
Click Save.
Ensuring Use of Bins on NetSuite Item Records
Controls can be established to guarantee that newly created items are set to utilize bins. A straightforward workflow can be implemented to default the Use Bins checkbox to checked and restrict users from modifying it.
When using the Advanced Bin / Numbered Inventory Management feature, it is not necessary to link bins with items before utilizing bins in transactions.
Need help creating a workflow in NetSuite? Look at this tutorial on How to Create a NetSuite Workflow Using a Saved Search condition!
Associating Bins with NetSuite Items
You can link bins to items on the item record by visiting Lists > Accounting > Items and editing the desired item.
Ensure the Use Bins box is selected.
Under the Purchasing/Inventory subtab, within the Bins sublist, choose the appropriate location for the bin, select your bin, and indicate if that bin should be preferred for that location.
Save the item record. Your bin will now be available for transactions.
You can also bulk assign bins; depending on your needs, consider these methods:
Saved Search/Mass Update: Leverage a NetSuite saved search or mass update to assign bins to items; note that this won't populate the inventory in those bins. After bin assignment, you must place the relevant inventory into the associated bins using the Bin Putaway Worksheet.
CSV Import for Items: Utilize a CSV import to add or update items with bin associations. You will need to use the Bin Putaway Worksheet thereafter to allocate inventory to those bins.
CSV for Inventory Adjustment: If avoiding the Bin Putaway Worksheet, a CSV import for inventory adjustment can be used to withdraw inventory and then reintroduce it with the specified inventory detail.
Configuring NetSuite Bin Preferences
To adjust bin preferences, navigate to Setup > Accounting > Accounting Preferences > Items > Transactions subtab.
Use Preferred Bin on Item Receipts - this is a universal setting.
When enabled, the Bin field on item receipts defaults to the preferred bin instead of being left blank.
Disable this setting if you prefer the Bin field to remain blank by default.
Require Bins on All Transactions Except Item Receipts - this is another universal setting.
Enabling this means that transactions altering inventory levels with binned items require a bin selection. If a transaction lacks a bin field, such as a PO, bins are not mandatory. Item Receipts, however, do not require a bin selection with this preference active.
Note: For any transactional edits on sales where a bin item is involved but a bin isn't specified, you'll need to state the bin for the transaction.
To allow transactions to add inventory without a specified bin, disable this preference. New inventory added without a specified bin will then be listed in the Bin Putaway worksheet for cleanup by the inbound manager.
By default, NetSuite mandates bin specification for transactions that deplete inventory.
Warehouse Processes and NetSuite Inventory Management
It's essential to understand that the performance of your NetSuite system hinges significantly on the effectiveness of your warehouse operations. More often than not, issues with inventory management that arise within the system can be traced back to flawed warehouse processes. Collaborate closely with your warehouse managers to identify any hurdles or delays in these processes. Equipping managerial personnel with better visibility within the system will aid in recognizing which processes might require adjustment.
Here are a couple of considerations for inventory management best practices:
For items without Use Bins activated, it's advisable to assess them for either a placeholder or a specific bin that reflects their true warehouse location.
Ensure that inactive items are appropriately marked.
If you prefer updating items individually rather than assigning bins en masse, the inbound manager should ensure that all newly received items are assigned a bin for precise inventory placement.
The inbound manager should oversee that every newly created item has designated bins; placeholder bins can be added for items that do not utilize bins.
The inbound manager must verify that the Bin Putaway Worksheet is cleared by the end of each day to ensure inventory level accuracy.
This approach can also extend to other teams if necessary, thereby enhancing the visibility for your inventory manager to help pinpoint the underlying causes of inventory inaccuracies.
If discrepancies arise due to accounting issues during pricing changes or other processes, consider establishing a designated bin for their use. Inventory managers can then monitor levels in this bin to check for errors during accounting or sales activities.
